The world’s biggest asset manager is set to wrap up fundraising by the first quarter of next year
[HONG KONG] Blackstone hit a US$10 billion target for its latest Asia buyout fund as investors bet an entrenched India presence and expanding footprint in Japan will keep powering strong returns, sources familiar with the matter said.
The world’s biggest asset manager is set to wrap up fundraising by the first quarter of next year, the sources said. The New York-based firm is likely to reach its US$12.9 billion hard cap, the maximum set out in marketing materials, the sources said, asking not to be identified because they are not allowed to discuss the matter in public.
Blackstone attracted big backers after its second fund, which returned 41 per cent as of the second quarter and has handed in nearly 80 per cent of the pool, the sources said. Asia II raised almost US$11 billion in 2021, including commitments from other Blackstone funds.
Blackstone’s fundraising comes as global investors are growing more cautious about private equity, with capital locked up for longer due to higher borrowing costs, fewer stock listings and declining secondary buyouts. Yet the largest alternative asset managers continue to attract commitments, leveraging their global reach, long track records and dedicated fundraising teams to stand out in a difficult market.
Among other buyout firms, EQT secured US$11.4 billion for its ninth Asia buyout fund by July, and plans to hit its US$14.5 billion hard cap in 2026, according to its first-half results. KKR gathered roughly US$14 billion ahead of the first close of its US$20 billion North American private equity fund, a sign of momentum in a difficult market, sources familiar said in February.
For Blackstone, about 90 per cent of its previous Asia fund investors are back in the new pool, increasing their average commitments by about 30 per cent compared with the previous fund, one of the sources said.
Blackstone started marketing its third Asia flagship fund in September 2024. In July, it gathered an additional US$3.5 billion, bringing the total to US$8 billion, according to an investor call on Jul 24.
A Hong Kong-based spokesperson for Blackstone declined to comment.
To avoid the India-heavy tilt of its first fund, Blackstone plans to broaden its holdings in Fund II by making Japan another core focus. For the prior two funds, 31 per cent of capital went to India and 22 per cent into Japan, with Australia making up 9 per cent, the sources said. BLOOMBERG
